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It is clear that your financial life is the product of your financial habits. The rules for financial stability and prosperity are: try to multiply your income sources; spend smart; spend less than you gain; every month make sure your balance (revenue - costs) is positive; constant saving; invest the savings. These actions, repeated every month, creates habits. Habits, repeated every month, accumulate and provide a stable financial status and, in time, produce prosperity.

Mintos becomes a member of the Spanish Fintech and Insurtech Association

By News, Peer-to-Peer Lending, , ,

Mintos logo

Mintos is now a member of the Spanish Fintech and Insurtech Association. The association aims to create a supportive environment for fintech and insurtech companies in Spain and strengthen the growth of the fintech industry.

The association achieves its goals through extensive research that leads to projects facilitating the creation of good practices in the industry and making it more dynamic. It is the voice of the fintech industry in Spain, and its goal is to achieve a more favourable regulatory framework that suits the demand of the modern environment and facilitates growth and development.

“We are proud to be a part of this community and to contribute to the development of the fintech industry in Spain. On Mintos, Spain is one of the target markets both in regards to investors and loan originators. Being a member of a dedicated association we will now be more involved in national events and the progress of Spanish fintech regulation. We are looking forward to the opportunities this partnership will facilitate,” says Martins Sulte, CEO and Co-founder of Mintos.

Currently, four loan originators on Mintos offer investment opportunities in consumer loans from Spain: Creditstar, Dindin, EuroOne and ID Finance. To date, around EUR 19 million has been invested in Spain-issued loans on Mintos.

The Mintos website is fully available in Spanish and Spanish-speaking investors can receive full customer support and communications in their native language.

5 ways to teach your kids about investing

By Smart money, , , ,

For many adults, investing is still a confusing pipedream that is rumored to lead to something called financial freedom. For those working outside of banking and finance, it may seem like those who invest are part of an exclusive elite club that have access to deals that are not available to the masses.

While this is of course not true, we recently thought that if adults still think this way then what about kids? By nature, kids are more open-minded and care free to the financial constraints of adult life (and they absolutely should be!). If you can reinforce the importance of investing and financial discipline from an early age, you will give them a valuable life skill which they most likely will not get from school.

Here’s our top 5 ways to teach your kids about investing:

1. Apps that help kids invest

With a variety of innovative apps available in the modern day, thankfully someone has created an app specifically for helping kids to learn to invest. BusyKid is an app that lets your child see the money they have earned from doing chores, manage their allowance and invest in to stocks. Investing can be intimidating for first-timers, but apps like BusyKid help simplify this experience so it becomes second nature to your children.

2. Create an investment account for them

Start making monthly deposits to an index linked fund or a P2P account which you plan to set aside and transfer ownership to them in the future. Over time and once they reach a mature age (Say their mid-teens), you can show this to them with a comparison of the total deposits you have made and how much interest you have earned for them with virtually no effort. Understanding the power of compound interest is the key to becoming an intelligent investor.

3. Compare 0% returns to your own returns

Do you give your kids pocket money every month? If you do, you can tell them how much their pocket money over the past few years could have been worth today if they had invested it. You can compare this with the performance of your own investments or for simplicity, at a rate of 10% per year in monetary terms or something better…

4. Speak their language

What’s the big thing they have wanted for a long time? Talking in terms of something visual or physical is much more receptive to kids than saying your money could have grown by X%. If they have been saving up for that new games console or bicycle and are still short of some money, you can help them understand that they could have been able to pay for it already if this money had been invested in the meantime.

5. Pay themselves first

If they are in their teens, maybe they even have a part time job at this point and you can help reinforce budgeting and paying themselves first for investing. If they have financial discipline from this age, they will carry this with them for the remainder of their lives and most likely be very thankful down the line when they retire 20 years earlier than their peers.

Tell them about the risks

It’s important to mention at this point, you should also inform your kids about the risks of investing and not putting all of their eggs in to one basket.

Source: www.bondora.com

Mintos exceeds half a billion euro in investments and continues to lead in Europe

By News, Peer-to-Peer Lending, , , ,

Mintos logo

Another significant milestone has been met by the Mintos marketplace for loans – in three years since its establishment, it has exceeded the half a billion euro mark in cumulative investments by investors. According to Altfi Data, Mintos currently is the leading player in the peer-to-peer lending market in Continental Europe with 39% of market share.

About EUR 1.5 million is invested in loans through Mintos daily, which is three times more than just a year ago. The average historic net annual return for investors over the past three years has been 11.9%.

Mintos is growing fast, which is reflected in the rapid expansion on both sides of the marketplace. On the investor side, about 3 500 new investors join Mintos each month. As of February 2018, there are 50 000 investors from 65 countries on the Mintos marketplace.

On the supply side of the marketplace, there are 35 loan originators from 21 countries on four continents – Europe, Asia, Africa and South America. This makes Mintos the world’s largest marketplace of its kind.

Martins Sulte, CEO and Co-founder of Mintos says: “We are proud of the results achieved so far and look forward to continued growth. We anticipate the size of our company, the number of loans and loan originators on our marketplace will grow significantly over the next few years, offering our investors even greater opportunities for great returns and diversification within a single marketplace. Our goal is to provide a free movement of capital that works for the benefit of investors and borrowers.”

Mogo cashback campaign extended on Mintos p2p lending marketplace

By News, Peer-to-Peer Lending, , , ,

Mintos logo

Do you want to get a cashback of up to 5%? Mogo has seen how much investors on Mintos have been enjoying its cashback campaign, so the company has extended it by an extra month.

Now, until March 16, 2018, if you invest in Mogo loans with a maturity of four years or more you can get a cashback of up to 5%! You will get an instant cashback of:

– 4% for investing in Mogo loans with a maturity of 48 to 59 months,

– 5% for investing in Mogo loans with a maturity of 60 months or more.

Make sure you enroll in the campaign before you make your investments.

Only investments made on the primary market qualify.

Mogo is one of the top loan originators on the Mintos marketplace. The company joined Mintos in March 2015 and has since funded car loans worth about EUR 100 million through the marketplace. On February 7, 2018, Mogo successfully attracted EUR 10 million via a bond issue.

 

For other bonuses visit our Cash-back & Bonuses page.

The best 8 reasons to become an individual investor

By Smart money, , ,

Nothing complicated, an individual investor is simply a person who makes certain investments on his own, from personal money.
This is unlike the big investors, the institutional investors, which are very large companies and engage in large-scale investments.
This is the reason why an individual investor is often called the “small” investor, even if this is not always appropriate …
Beyond the title, becoming a “small” individual investor today is one of the best decisions you could ever make.
I know, maybe at first glance it seems to be a very complicated, costly and time-consuming thing, but in reality it’s not like that.

Here are 8 reasons why becoming a “small” individual investor is a very great thing:

1. To get profits

Okay, this is probably the no.1 reason for which most people are thinking of becoming individual investors …
However, it is a good idea to know from the start what kind of profits you intend to get.
For example, if you want to get big profits quickly, even at the risk of disappointing, I have to tell you from the beginning that this is not working. At least not from investments. And certainly not on a regular basis.
On the other hand, if you want to make reasonable profits but on long and very long term, then you have a good chance of succeeding. You just have to make a good plan and keep it with consistency and the results will begin to appear.

2. To build a prosperous future for you and your family

Investments really work on long and very long term. That is, that is why their most beautiful results will come exactly when you will most need them: AFTER ending your active life when you get to … a “retirement”.
Then you will enjoy more than ever that in your youth you have made the decision to become an individual investor because your investments will continue to produce positive results that will significantly improve your standard of living.
Plus, you will have the opportunity to teach your children to do the same thing as you, so they will have the chance to continue your legacy successfully.

3. To create passive income streams

Of course, the sources of active income you have now are very important, whether you are an employee or you have a small business.
But they have a major problem: they are strictly based on your work. It is for this reason that you should not rely solely on them for the future, but start building yourself as many sources of passive income as you can.
They have the great advantage that they require very little of your time, energy and attention, and they continue to earn you income in your absence.

4. To get financially independent

Getting financially independent may seem – at first glance – just a beautiful dream …
But it’s not like that.
The passive income sources you build as an investor will develop over time in the long run, so it is very likely that at some point they will bring you enough income to sustain your living standards at a reasonable level.
On the other hand, without these passive income sources, it is certain that you will remain dependent on your work, so you will never get financially independent.

5. Because otherwise nobody cares about you

Okay, if you do not take care of your financial future, who do you think will take care of you later, the government, the state?
The pension system is already bankrupt, and works only because it is supported by the state budget.
Meanwhile active population declines and retirees are getting more and more numerous.
That’s why I think it’s a good idea to create your own investment system, which in the long run can turn into your primary source of passive income.

6. Because it is now easier than ever to do this

There is a preconceived idea that in order to be successful as an investor, it is imperative to have in-depth economic studies, to be a great specialist in this field, and to spend all day studying financial and graphic reports.
This is totally false.
Of course, being a trader in the capital market and in Forex is a full-time job, but there are tens of millions of ordinary people in the world who carry out their normal daily activities and invest PASSIVELY in the long run without much effort .
Also, the idea that to invest you need big amounts is totally wrong. Today there are many financial instruments that are very affordable and where even very small amounts can be invested.

7. Because the sources of information are very numerous

In the Internet age where we are, any investor can quickly find a wealth of information about the subject that interests him.

8. Because everyone does the same

All the responsible people are constantly concerned about their future in the long run.
And, as they know that the aid coming from the respective states (in the form of pensions) is rather limited, they are concerned about active life in contributing to private pension plans and build their own investment portfolios.
Because they know, for generations, that only in this way they will have the chance to build for themselves and their children a good future without stress, worry or need.

Mintos expands into Latin America by offering loans from Colombia

By News, Peer-to-Peer Lending, , , , ,

Mintos logo

Mintos adds the fourth continent, Latin America, to its geographical diversity by adding a new loan originator from Colombia. RapiCredit.com has joined the marketplace and for the first time, you can now invest in Colombia-issued short-term consumer loans with returns up to 13%.

“RapiCredit.com joining Mintos is a great achievement. With this addition, Mintos now offers loans from four different continents and 21 countries. Latin America’s alternative finance industry is growing rapidly, and we could not be happier to start on this continent with Colombia. Colombia is presently one of the first fintech hubs in the region and has one of the most comprehensive legal frameworks. We look forward to exploring this market further, and we are glad to offer this new opportunity to our investors,” says Martins Sulte, CEO and co-founder of Mintos.

RapiCredit.com is a front-runner in the online lending industry in Colombia and started its operations in April 2014. The company’s business model is built on its flexible, quick and hassle-free model to supply loans to borrowers using different online channels. The company was the first to launch a Facebook credit bot in the region. Rapicredit.com is committed to being transparent towards its customers, and this can be seen in its services – there are no hidden charges, fine print or unexpected costs.

“Rapicredit.com is helping Colombia’s growing middle class to avoid informal loans and create a credit history. More than 20 million people in this country are underbanked and underserved. Through the intelligent use of technology, we are helping young Colombians with fast and easy short-term loans to help them pay for unforeseen expenses such as caring for children, helping a family member or to pay unexpected costs,” says Daniel Materon, CEO of Rapicredit.com.

Colombia-issued short-term loans from RapiCredit.com on Mintos range from EUR 30 to EUR 160. The expected net annual return for investors is up to 13%. The repayment average period is 32 days and the company ensures all loans that are delinquent for more than 60 days will be bought back. Historically, non-performing loans for RapiCredit is below 10%. The company will maintain 5% skin in the game.

The alternative finance industry in Latin America is expanding quickly. In 2016, the industry in Colombia experienced rapid growth, from $334 thousand in 2015 to $11.2 million in 2016, representing a growth of 3 257%. The market has been driven predominantly by balance sheet consumer lending.

First loan originator from Armenia – Varks.am – joins Mintos p2p lending marketplace

By News, Peer-to-Peer Lending, , , , ,

Mintos logo

The first loan originator from Armenia has just joined Mintos! Varks.am is one of the leading alternative lending companies in the country and now offers short-term consumer loans for investment on the Mintos marketplace. Loans from Varks.am are listed in euro (EUR) with expected returns of 13%.

Established in 2016, Varks.am is a universal credit organisation that offers its customers fast and easy access to funds through an effective application process. Clients can receive their loan from the company in cash after applying at one of the 30 branches the company has across Armenia.

Varks.am has more than 180 qualified and dedicated employees and a reliable client identification process which involves meeting all clients in person. Currently, Varks.am offers consumer loans, however, the company plans to expand the loan types issued to include business, pawnbroking and mortgage loans in the future.

Armenia-issued short-term consumer loans on Mintos from Varks.am range from EUR 17 to 420. The average repayment is 30 days and borrowers repay the loan in a single instalment. You can expect a yearly return of up to 13%.

All loans from Varks.am that are delinquent for 60 days will be secured with a buyback guarantee by its parent company. In addition, Varks.am will keep 10% of all loans placed on Mintos on its balance sheet – to ensure its interests are aligned with those of investors.

“We are truly excited to add Varks.am to the marketplace. Armenia is the 20th country on the marketplace and we are pleased to offer our investors the opportunity to invest in short-term consumer loans in a new geography,” says Martins Sulte, CEO and co-founder of Mintos.

Varks.am is a licensed financial institution that is governed by the Central Bank of Armenia. As of December 31, 2017 the company had a net loan portfolio of more than EUR 6.5 million. The company is steadily growing its customer base and its priority is to maintain a balanced growth through special offers whilst also focusing on its loyal customers.

The average customer of Varks.am is a 26 to 30-year-old male who is seeking a loan to cover unexpected expenses and make small purchases. Clients appreciate that Varks.am has many branches throughout Armenia, so a branch is never too far away. The company serves its clients very quickly and effectively, creating convenient lending conditions for its customers.

To obtain exposure to Varks.am loans, investors will be able to invest in loans issued by Mintos OU to Varks.am, where repayments depend on the final borrower’s payments. Each loan issued by Mintos OU to Varks.am will be pegged to a respective loan issued by Varks.am to the final borrower. Mintos OU is a Mintos group company.

5 things you should know about Peer-to-Peer lending platforms

By Peer-to-Peer Lending, Smart money, , , , ,

Peer-to-Peer lending (or P2P), is a relatively new asset class in the world of finance that has gained traction within the last decade. Most recently, the past 5 years have seen an explosion of p2p lending platforms offering different investment options, rates of return, business models and the assets they invest. As the baby of the alternative finance world, Peer-to-peer lending platforms have paved the way to a fair and competitive marketplace that challenges the traditional monopolization held by the high-street bank giants.

The banking landscape has undergone a major shift where an individual person, like you, can now become the lender and earn the exciting interest rates that were previously not accessible to anyone outside of institutions.

Do you need to have a financial background to take part? No. Do you need access to huge amounts of cash to get started? Nope. Do you need any special licenses? Absolutely not.

Let’s review 5 things you should know about Peer-to-Peer lending, whether you’re a complete beginner or a P2P veteran.

1. Investing options

This is different across every p2p lending platforms but in general, you can break the types of ways to invest in to three different options. The first is some kind of automatic or managed option, where you essentially click ‘Go’ and the platform does the rest for you. Some platforms allow an element of choice with this, such as what risk you would like to take and what target net return you have in mind.

The second type can be classed as manual/semi-manual, meaning you take the wheel and pick a number of customer filters which allow you to whittle down your selection of investments to match your specific criteria. Some argue that this can be more lucrative in the long-run, however it completely depends on personal choice.

The third and least common option available is to invest via an API, it’s fair to say that this is only suited to investors with a technical background or those who have the availability to invest significant time learning how to build their own API.

2. Secondary Market

Most platforms now have what is called a Secondary Market, we’ll use an example of investing in unsecured loans to explain how this works. When you invest in a loan, it may have been issued to the borrower for a term of 36 months. The borrower makes their repayments each month including the principal and interest payments and at the end of the 36 months (assuming all payments have been made), the loan will conclude and the investor will have received all of their original principal back in addition to the interest.

An investor may decide after 18 months that they want to withdraw their investment in the loan and use the funds for another purpose. In this situation, the investor would have to list their investment in this loan for sale on the Secondary Market which can then be purchased by another investor.

3. Different assets

While P2P may be viewed as an asset class on its own, peer-to-peer lending platforms commonly offer completely different and unrelated investment opportunities. For example, Bondora only offers investments in unsecured loans which individual borrowers take out for a variety of purposes, such as home renovations or a one-off large purchase.

Other platforms may only offer investments in property, where your investment accumulates with others to fund one large total investment in an apartment building or development project. Some platforms even offer investments to fund a business loan for either an established or start-up business.

4. Rate of return & Fees

When investing in the different assets mentioned above, this can have a direct correlation with the rate of interest you can expect to receive back on your funds. Ranging anywhere from 4% to 20%+ expected return, this varies significantly between p2p lending platforms and can also be determined by the duration you want to invest for.

Some platforms also charge management fees to allow you to invest through them, others may only charge these fees once you come to make a withdrawal. Due to each platform having their own expected net return and fee criteria, it’s best to employ a holistic view when making your decision of where and how much to invest with separate platforms.

5. Third parties

This one may not be as significant for every investor as the other points, but it’s still good to know all the information and make an informed decision on where you choose to place your funds. In the most basic terms there are two parties involved in P2P lending, firstly you (the lender or investor) and the borrower.

A platform may choose to outsource their borrower operations to third parties who provide the investors with customers who need loans. In another scenario, a company might internally source all of their own borrowers and then look to larger institutional investors to fund these loans. At Bondora we keep both sides in-house, meaning we source our own borrowers and investors, with only approximately 5% of these investments coming from institutions. Overall, this lets us focus on building a product that benefits both our investors and borrowers.

So there you have it

Now you know 5 important things about p2p lending platforms, take a deeper look in to the platforms you already invest in. If you’re a complete beginner, get started today.

Source: www.bondora.com

5 ways to increase your income today

By Smart money, , ,

We’re going to make a prediction that the majority of people reading this have no more than 2 sources of income, namely from employment and your investment portfolio. Have you ever considered yourself as an entrepreneur? The English Oxford dictionary defines an entrepreneur as “A person who sets up a business or businesses, taking on financial risks in the hope of profit”. The part of that definition that sings to us is the first half, and the good news is that you don’t need to start a multi-national corporation or an innovative tech company to create an alternative income source for yourself.

One of the most important rules any seasoned investor will tell you is to diversify, diversify, diversify to manage your risk. It’s the same with your income. With all of your commitments, family and future goals on the line, should you really only rely on the money you receive from your day job to support that? Other than the obvious benefits of having more money in your pocket, an alternative income stream can act as an insurance policy in case your employer makes some unexpected changes. And if you think you’ve got even a little bit of an entrepreneurial spirit in you, you can do it for the outright fun.

Let’s talk about 5 alternative income sources you can get started with today.

Side hustle

What are you good at? What do your friends and family come to you for when they need a favour? What has been a lifelong hobby of yours? The truth is, most people don’t realise they have something unique to offer and will cross off the possibility of a side hustle almost immediately. You might be a fantastic swimmer; adults and children alike both want to learn how to swim and you could be the person that leads a class to help them once a week. Or maybe you have more technical skills than most, we’re sure if you walk down the high street in your local town you will find some independent businesses in need of a website, social media presence and help with SEO. If you love to paint, try selling some of your beloved pieces of art online. There are literally 100’s of side hustles you can start up today with little to no cash required.

Affiliate Programmes

Since the dot com boom, millions of people all over the world have started blogging about a variety of different topics and industries. In finance, some make a comfortable living by blogging about their experiences in investing in different types of assets and platforms. Most companies have what is called an Affiliate Program, which compensates people for referring others to their business whether it’s through a blog or even just to your friends and family. This is the same for most industries including fashion, transport and accommodation to name a few.

Sell your stuff

Introverts might shudder at this, but fear not. Traditionally people went to markets, festivals and events to set up a stall and sell a variety of things to those in attendance. Thankfully, a few bright sparks had the idea of setting up companies like Ebay, Shpock, Gumtree and Osta to sell anything from the comfort of your home. Take a look around your house this weekend, are you going to hold on to that smoothie maker you’ve never used for the next 10 years or sell it to get some cash?

Sharing economy

Airbnb, Uber, Task Rabbit, you’ve heard of them all. Despite this, most of us stay on the consumer side of the transaction and let’s face it, they are great services. It’s a great opportunity for anyone with their own place to become a host, even if it’s once in a while when you’re planning a weekend away. Business Insider has compiled a list of 25 places you need to visit in 2018, do you live in one of these places? If so, then this year might be a great time to start and capitalize on a growing number of tourists in your area. With companies like Uber and Taxify, you could try working only the busy periods like Saturday nights or the morning rush hour to make the most of your time.

Invest

We expect most of our readers to already be doing this, but it’s worth mentioning. Whether it’s in P2P, real estate, stocks or something else, generating a monthly income from your investments is a very real possibility that you should take advantage of. Recently, we wrote a post on how this is possible in the miracle that is compound interest and the importance of setting goals in achieving financial freedom.

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If you’re serious about increasing your income, you could even try putting all of these sources together and make a significant change to your financial standing. If you’re already doing this, we’d love to hear how it’s working for you. Leave us a comment below and let us know how many alternative income sources you have.

Source: www.bondora.com

The Ultimate Guide to your mortgage

By Smart money, , , ,

Mortgages. The word itself comes from the French ‘Mort-gage’, which literally translates to ‘death-pledge’. On a lighter note, having a mortgage has for many decades been viewed as the first step into the adult world for many people as you move away from your family home or rented accommodation. While a mortgage is not for everyone (especially those who relocate often or have other commitments), financially it is indeed a fantastic way to reap the rewards of capital growth over time and create a nest egg to leave to your relatives in the future.

So other than finally being able to turn your basement into a miniature bar or build that greenhouse you’ve always wanted, there are a few things you should know to make sure you’re not paying any more than you need to and what to expect over the long-term.

Applying for a mortgage

If you’re reading this, you might not even have a mortgage yet and you’re thinking about how you can get started. While there are several new alternative finance platforms cropping up who offer residential mortgages, it’s highly like that most people will still go to their local bank (for now). Trying to break through the jargon and ancient systems used by the banks can make applying for a mortgage feel like trying to solve a Rubik’s Cube. To get started, try using a comparison site to filter a few potential mortgage providers for you. Enter your income and expenses details as well as the price of the property and your deposit, then most should show you an indication of what interest rate and product you can expect to get.

After that, you can either fill out an application online or set up an appointment either via video link, phone or face to face if there is anything you are unsure about. This is most likely going to be the biggest financial commitment of your life, so make sure you take the time to understand the financial provider you will be using to help you with it.

Repayment type

In general, one of the first things a bank will ask you when applying for a mortgage is what type of repayment option you want. Huh? Don’t worry, in general there are only two separate options that you need to know about:

  1. Principal and interest (Repayment) – Each month you pay the principal that you borrowed on the property plus the interest that the bank charges, at the end of your loan term you own the property outright with no extra payments due.
  2. Interest only – Each month you only pay the interest that the bank charges (Meaning you have a significantly lower monthly payment than you would on a principal and interest repayment basis), the whole principal amount is due at the end of the loan term. Overall, you will pay significantly more interest over the loan term with this option.

Over the past couple of decades, a lot of people using the interest only repayment option have got in to financial difficulty at the end of their schedule and ultimately had their home repossessed by the bank. A lot of banks and financial regulators are now imposing much stricter regulations for people who request an interest only repayment due to this. In contrast, it can be an extremely lucrative option for people buying a property to rent it out.

Mortgage Term

Another important thing you need to decide is how long you are going to take out your mortgage for, known as the ‘mortgage term’. 10 years? 20 years? 40 years? The answer really depends on you and your personal and financial circumstances.

If you’re expecting a few life events over the next 5 years, such as getting married or having children, then you might consider extending the mortgage term to keep your monthly repayments lower. Or maybe you are in the middle of a training induction period at work and you know you are going to receive a considerable pay rise in the next 12 months (Lucky you!), in this case you might choose a lower mortgage term with higher monthly repayments.

Bear in mind, the length of your mortgage term has a significant impact on how much interest you will pay overall.

Product

Possibly the most crucial aspect of your mortgage is the product that you choose. In general, this can be separated in to two types of products; fixed rate and variable rate.

  1. Fixed – Your monthly repayment will remain the same for an agreed period of time, for example, 2 or 5 years. This can be very useful for budgeting and for the risk-averse person who does not want to take any chances with rising interest rates.
  2. Variable – A variable rate can change on a monthly basis, either in line with the banks own rate, EURIBOR or the rates issued by your national bank. You may benefit from lower rates especially in a booming economic environment, however it can be harder to budget on a monthly basis.

The length of time you can have one of the products for completely depends on your bank, ranging from 1 year to a lifetime product offered by some providers.

If you’re thinking you don’t have either of these products, you may be on the standard default option product issued by your bank. This is usually the rate you roll on to after your fixed or variable rate ends (and if you don’t arrange a new one), it is usually much higher than the other products available and most people see their payment increase once and completely forget about it. If this sounds familiar, check with your bank immediately because you have the potential to save yourself €100’s per month!

Overpayment

One of the most valuable tips we can give you is to make the occasional overpayment on your mortgage, it has the potential to save you a colossal amount of interest over the term of your mortgage. Money Saving Expert has a fantastic overpayment calculator you can use to test the impact of making an overpayment, we’ll add an example below for you.

Let’s say you have a mortgage of €100,000 on a repayment basis with a 35 year term at 3.5% interest. Each month, you give the bank €413 which pays back the principal and interest. Let’s also say that from your investment portfolio, you are generating a very realistic minimum figure of €100 per month in interest for yourself. You then decide to put this €100 to use and make a regular overpayment each month on your mortgage, this is what happens:

  • Overpaying would save you €25,594 in interest alone
  • You will pay off your mortgage in full 10 years and 11 months earlier than originally planned

Wow! For some, that means retiring from work over a decade earlier and having a nice amount of savings each month to spend on whatever you want. Go ahead, test it yourself and play around with the figures.

Remember, this is all realistically possible by generating a cash flow from your investments and setting yourself a goal.

Now you know

Hopefully this guide will be of use to anyone who has a mortgage or is looking to get one in the near future, make sure to read over these points a few times and take it all in, it could save you €€€’s.

Source: www.bondora.com

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